The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today announced that internet advertising revenues reached a new record of $3.9 billion for the first quarter of 2006 - a 38 percent increase over 1Q05's $2.8 billion and a 6 percent increase over 4Q05's $3.6 billion.

"The steady growth of online advertising is a clear indication that marketers continue to believe in the opportunities and effectiveness that this medium delivers in reaching and engaging their consumers," said Greg Stuart, IAB CEO.

"The Internet continues to shape the media landscape as more advertising dollars are going online," said Peter Petrusky, Director, Advisory Services, PricewaterhouseCoopers. "It is abundantly clear that marketers are seeing a compelling opportunity to leverage the internet as a powerful medium that drives both branding and sales results."

Conducted by the New Media Group of PricewaterhouseCoopers, the "Advertising Revenue Report" was started by the IAB in 1996 and includes data from all companies that report meaningful online advertising revenue, including websites, commercial online services, free email providers, and all other companies selling online advertising.